Japanese Yen: Is there upside risk against US Dollar amid sideways trading? – UOB

Range-bound trading continues to shape USD/JPY price action, with intraday levels and the wider 157.00–158.60 band providing direction, according to United Overseas Bank strategists Quek Ser Leang and Lee Sue Ann. Although near-term momentum is not firmly bearish, the strategists highlight a sharp build-up in downward momentum in their 1–3 month outlook, signalling further Dollar weakness against the Japanese Yen.

Is momentum shifting lower as range trading persists?

"24-HOUR VIEW: We indicated last Friday that USD “could trade between 157.20 and 158.20.” However, USD fell to a low of 156.94 before quickly rebounding to close at 157.53 (-0.10%). Despite declining, there has been no increase in downward momentum, and today, USD could trade between 157.10 and 158.05."

"1-3 WEEKS VIEW: In our most recent narrative from last Wednesday (28 Oct, spot at 157.85), we highlighted that USD “has likely entered a range-trading phase, and for the time being, we expect it to trade between 157.00 and 158.60.” On Friday, USD dipped briefly below 157.00 to a low of 156.94 before rebounding. Given that there is no sustained break below 157.00, we will continue to hold the view that USD is likely to trade between 157.00 and 158.60."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Know more.)